Do I Need Life Insurance?
Securing the right life insurance policy is critical in planning for the future of you and your loved ones. Life insurance can help ensure your family’s protection when you are gone.
The right life insurance policy will be unique and dependent on your personal and financial needs. As your life changes, your coverage may need to change to adapt to your current situation.
Types of Life Insurance
There are several different types of life insurance products available. The most common are:
Term Life Insurance: Provides protection for a specified period of time. It’s generally less expensive than permanent (whole) life insurance, and is available in varying time periods with fixed premiums from a one-year to 20-year period.
Whole Life Insurance: A form of permanent life insurance that remains in force for your entire lifetime, provided premiums are paid as specified in the policy. Whole life insurance can be an investment opportunity, as many whole life insurance policies also build cash value over time.
Universal Life Insurance: A form of permanent life insurance characterized by its flexible premiums, face amounts and unbundled pricing structure. Universal life can build cash value and earns an interest rate that may adjust periodically, but is usually guaranteed not to fall below a certain percentage.
Advantages of Life Insurance
Not only can life insurance provide assurance for your family after you are gone, but many life insurance options also offer other benefits and investment opportunities to take advantage of while you are living.
Life Insurance Death Benefit provides income (tax-free) to your named beneficiary or beneficiaries when you pass way. The income can be used to pay funeral expenses, debt, tuition, estate taxes, or virtually any financial need.
Living Benefits are the cash value growth of a permanent (whole) life insurance policy and are tax-deferred, meaning you do not pay taxes unless money is withdrawn. Loans or withdrawals can be taken against the cash value of a permanent life insurance policy to help with expenses.
Questions to Ask
Here are a few questions to consider when looking for life insurance:
- Does a permanent or term life insurance policy make sense for me?
- What are my goals? How many family members need to be supported if I pass away?
- What are the policy’s benefits and exclusions?